Energy / Hydraulic Fracturing

Kasich won’t take ‘no’ for an answer

Vows to fight for tax cut, taxes on ‘fracking’

COLUMBUS — “In perhaps a nod to how Kasich intends to sway the legislature, the governor insisted today that what he’s proposing is not a tax increase on drilling.

‘How you call something a tax increase when there is no tax increase,’ Kasich said. ‘It’s an automatic deal. We raise the severance tax and all the money goes to lower the income tax. It’s a net-net zero … We’re not raising the severance tax and using it to grow government. We’re taking the severance tax and lowering taxes for 11.5 million Ohioans.’

Kasich wants to take advantage of Ohio’s shale boom by taxing crude oil and natural-gas liquids from fracked wells at 1.5 percent of gross receipts, eventually increasing to 4 percent. The rise would depend on when each company has recovered its start-up drilling costs. Dry gas from fracked wells would be taxed at 1 percent.

The state now charges a 20-cents-per-barrel tax on crude oil, a 3-cents-per-10,000-cubic-feet tax for dry gas, and no tax for dry-gas liquids — regardless of how the well was drilled.”

— Joe Vardon, Columbus Dispatch

Read the whole story: http://www.dispatch.com/content/stories/local/2012/03/19/kasich-wont-take-no-for-an-answer.html

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